We work hard to show you up-to-date product terms, however, this information does not originate from us and thus, we do not guarantee its accuracy. Before submitting an application, always verify all terms and conditions with the offering institution. Please let us know if you notice any differences.

† Approval Odds are WalletHub estimates intended to gauge your likelihood of approval for a particular product. Approval Odds are based on WalletHub data and are not provided or endorsed by the lender. Approval Odds are not meant to imply or guarantee that you will be approved by the lender or that credit will be extended.

Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.

No annual fee credit cards are available to people across the creditworthiness spectrum, from bad credit to excellent credit. And there are numerous reasons to get one. For example, if you don’t plan to make purchases very often, you may not earn enough rewards to offset a credit card’s annual fee. In fact, you probably won’t qualify for good enough rewards to warrant paying a fee until you reach good credit. And it’s a no-brainer when it comes to financing, since the goal is to minimize the total cost of debt – both fees and interest.But things aren’t always so clear-cut. Some of thebest rewards credit cardshave annual fees, and their earnings easily cover the cost. So if you plan to pay your bill in full every month and can qualify for an elite rewards card, your choice should come down to what you get in return for how much you spend, including fees. You cancheck your latest credit score for free on WalletHubto see where you stand. And below, you can compare dozens of no annual fee credit card offers (some of which come from advertising partners). If you’d like a recommendation, you can find a breakdown of WalletHub’s favorites at the bottom of the page.…show moreshow less

Earn 2% cash back at restaurants & gas stations on up to $1,000 in combined purchases each quarter. Plus, 1% cash back on all your other purchases.

Get a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically.

Additional Info

New! We’ll monitor your Social Security Number. Get an alert if we find your Social Security Number on any of thousands of risky websites.* Activate for FREE.

No Annual Fee, cash back on every purchase, and helps you build your credit with responsible use.

Your Secured Card requires a refundable security deposit up to the amount we can approve of at least $200 which will establish your credit line. You will need to provide your bank information when submitting your security deposit.

We will automatically begin reviewing your account starting at 8 months to see if we can transition you to an unsecured line of credit.

What are the best no annual fee credit cards?

By: John Kiernan, Credit Card EditorThere are hundreds of no annual fee credit cards available, which can obviously make it difficult to choose the right offer. But finding the best no annual fee credit card for your needs doesn’t have to be complicated. You just need to know your credit score and how you plan to use your new card.

For example, the best no fee credit card for a student who loves to travel and always pays his or her bills in full would be very different from the top card for someone with excellent credit who’s in the market for a balance transfer.

With that in mind, our editors compared more than 900 offers with no annual, monthly or one-time fees in search of the best offers for the most common consumer needs. You can find their picks for the year’s best no annual fee credit cards below.

The lower your credit score is, the more important it is for you to get a no annual fee credit card. After all, low-cost credit improvement should be your top priority. Things aren’t so clear cut for people with good or excellent credit, however. Many of the best rewards credit cards charge annual fees, at least beginning the second year your account is open, but their generous terms can more than make up for the cost if you use your card regularly.

If you’re looking for a specific type of no annual fee credit card, here are the top cards in some of the most popular categories:

For your reference, the average credit card charges a $16.78 annual fee, according to WalletHub’s latest Credit Card Landscape Report. And the highest annual fee on the credit card market right now is a whopping $995, belonging to the MasterCard Gold Card.

Why do some of the best credit cards have annual fees?

By: John Kiernan, Credit Card Editor

Many of the market’s best overall credit cards charge annual fees. And while that’s counterintuitive in the sense that no one would opt for a card with a fee over a no fee card if all else were equal, you have to remember that other factors are in play. In most cases, rewards are the explanation.

It doesn’t really make sense to pay a fee to use a 0% credit card, after all, since your goal in that situation is to reduce the cost of your debt. But paying a fee for one of the best rewards cards can help you get the most total value. It just depends on your spending habits and available options. You generally won’t qualify for rewards worth paying for until you have at least good credit.

So the moral of the story is that you can’t assume a no fee credit card is automatically better than a card with a fee. You have to compare the total package offered by each to see which is right for your particular needs.

Are there any credit cards without fees whatsoever?

By: John Kiernan, Credit Card Editor

When people talk about no fee credit cards, they usually mean those without annual and monthly membership fees. But some folks want more: a truly fee-free credit card, with no past-due fees, over-limit fees, balance-transfer fees or foreign-exchange fees, either. Cards lacking all such fees do indeed exist. The PenFed Promise Credit Card is one good example. However, there are two important things you need to understand about such offers:

First, if you need a card without over-limit and past-due fees, you shouldn't be looking for a credit card at all. The damage you’ll do to your credit by missing payments or maxing out your spending limit will surely outweigh whatever you save by avoiding fees for those offenses. This is especially true in the post-CARD Act era, as penalty fees can’t exceed the actions that trigger them. For example, if you spend $5 more than your allotted credit limit, the maximum fee would be $5.

Secondly, there’s no perfect credit card. Every offer has its fair share of pros and cons, and credit cards that lack fees entirely usually compensate by offering worse rewards or interest rates. That’s why credit cards without balance transfer fees have relatively high APRs, why rewards cards without fees tend to offer reduced earning rates, and so on.

The moral of the story is that you should compare credit card offers solely based on the features that will affect you most, given your spending and payment habits. After all, if you plan on using your card for rewards, why would you care if it has a balance transfer fee?

What sets no annual fee credit cards apart from one another?

By: John Kiernan, Credit Card Editor

Picking a no annual fee credit card can be tough, seeing as they all have one major thing in common. But finding the best no annual fee credit card for your needs is simply a matter of deciding how you’re going to use it.

If you want to lock your card in a drawer to build credit without being tempted to overspend, it doesn’t really matter which particular no-fee card you get.

If you plan to make everyday purchases and pay your monthly bill in full, focus on finding rewards that suit your lifestyle. Most people should opt for cash back, but frequent travelers can score big-time savings from the best travel rewards cards.

If you want to finance a big purchase or transfer a balance, look for the longest 0% intro period and, if applicable, watch out for transfer fees.

Finally, if you want to skip the heavy lifting without sacrificing any savings, sign up for a free WalletHub account. We’ll give you a personalized credit card recommendation based on your latest credit score and report.

How do issuers make money from credit cards with no annual fees?

By: John Kiernan, Credit Card Editor

Credit card companies make money in a variety of different ways. This includes charging annual fees on many offers, sometimes in addition to monthly fees and certain one-time fees. But credit card companies also require merchants to pay so-called interchange fees whenever credit cards are swiped at their stores. Furthermore, card issuers assess interest on balances carried from month to month. And they charge for late payments and over-limit spending (if you opt-in for the ability to exceed your limit).

So as long as a customer actually uses his or her card, the issuer will have plenty of opportunities to make money, even if charging an annual fee isn’t one of them.

With that being said, a credit card company is bound to lose money on a no annual fee credit card that gets activated but goes unused. Because from mailing statements to operating a customer service department, there are many fixed costs associated with running a credit card program. That’s why credit card companies would prefer to always charge annual fees if they could get away with it. But competition and consumer demand make that impossible.

Do most no annual fee credit cards charge foreign-transaction fees?

By: John Kiernan, Credit Card Editor

Yes, most credit cards with no annual fee do assess a foreign-transaction fee on purchases processed outside the U.S. But foreign fees are far less common among no annual fee cards than the general credit-card population.

More than a third of all no annual fee credit cards can also be classified as no foreign fee credit cards, according to WalletHub’s database of 1,000+ offers. But roughly 90% of all credit cards charge foreign fees.

More and more credit cards are either reducing or removing their foreign fees, as well. That’s why the average foreign-transaction fee has fallen by more than 20% since the beginning of 2011.

But it’s still worth finding a no foreign transaction fee credit card if you plan on traveling abroad or buying something from an international merchant. Doing so will save you about 2% compared to the average credit card, and it will allow you to get the best deal on currency conversion.

Ask the Experts

For more advice on how people should think about no annual fee credit cards, including when getting one is most important, we posed the following questions to a panel of personal finance experts. You can check out their bios and responses below.

Do you think consumers put too much emphasis on a credit card’s annual fee?

Are there any situations when it’s especially important to get a credit card with no annual fee?

How much money do you think people waste on annual fees for cards they no longer use?

Do you think everyone should have at least one no-annual-fee credit card in their wallets?

Jared A. MooreMary Ellen Phillips Associate Professor of Accounting and PhD Program Director in the College of Business at Oregon State University
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Ayalla A. RuvioAssistant Professor of Marketing in the Broad College of Business at Michigan State University
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Hooman EstelamiProfessor of Marketing in the Fordham Schools of Business at Fordham University
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Lan XiaAssociate Professor of Marketing at Bentley University
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Himanshu MishraProfessor of Marketing in the David Eccles School of Business at University of Utah
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Jenny OlsonAssistant Professor of Marketing in the School of Business at University of Kansas
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Jennifer L. BurtonAssistant Professor of Marketing at The University of Tampa
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Patrali ChatterjeeProfessor of Marketing in the Feliciano School of Business at Montclair State University and Co-Chair of the 2016 Annual Conference at American Collegiate Retailing Association
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Community Discussion

@WalletHub

January 20, 2016

Unfortunately not. If you have bad credit, you can expect to pay either an annual fee or a security deposit. We recommend the latter unless you absolutely need emergency spending power because secured card deposits are refundable. You will get your money back, minus any outstanding balances, when you close your account. What’s more, secured credit cards provide the exact same credit-building benefits as unsecured cards.

I’ve had the Citi Double Cash Card Rewards card for a few months now and so far I’ve had a good experience with it. My favorite part is obviously the fact that there is no annual fee. It’s such a waste of money to pay for annual fee when there are so many cards without one.

My favorite card without an annual fee is the American Express Blue Cash Everyday card. I use this card for almost everything from my monthly phone bill to groceries to gasoline for my car. I love that there are no special rotating categories for extra cash back. The rewards program is straightforward and I know which purchases will reap the most benefit. Most importantly the lack of an annual fee makes this card a real money saver and something everyone should have in their wallet. I don’t have a single complaint about this card. I love it!…read more

My favorite no annual fee card is definitely the Citi Double Cash card. There isn't a single thing that I would change about it. It took me a bunch of comparing between this and another card before I finally decided on this one and I have been more than happy with my decision ever since. I'd recommend it to anyone looking for a card with no annual fee!

I currently use Macy’s AMEX and it has no annual fee. I love it because I don’t need to pay the annual fee which I think is a waste of money. There are plenty of credit cards out there that if you qualify has no annual fees whatsoever. The best part of this credit card is because it’s from AMEX, I am eligible to participate in various AMEX promos like discounts to certain stores or cash back.…read more

I had a no fee credit card several years ago, but unfortunately, I ran into some problems with being laid off and losing my wife. It went to collections and I eventually paid it off over three years. I tried to reapply, but I was told I could not get a new one. My credit score was below 600, and I was told it would take at least five years of good credit before I could reapply. So I am doing the right things such as paying my bills on time, and balancing my check book. Maybe I’ll be able to get on top of things once again.…read more

I have a Discover Card with no annual fee. There are no conditions that connect annual fees to spending levels. It is great not to have to worry about extra debts piling up due to fees. Along with the bonus rewards and low rates, the no annual fee makes this a very desirable card. I will never get a card with an annual fee again.

I have a Citibank Platinum Select Visa, and it has no annual fee. Whether it's a large fee billed once a year, or divided up into twelve payments once a month, not having this extra fee gives me a lot more freedom and less worry about paying off my debt. It would annoy me to get to a zero balance but still find myself charged an annual fee, and this card skips that, treating me more like a customer rather than a cash machine. To me, having an annual fee is almost like having a secured card - you end up paying for the privilege of using credit. Having a no annual fee card like mine helps my credit work for me, not against me.…read more

i have a card with no annual fee.i Have to use the card for shopping so much in order not to have an annual fee.in other words at least 30 percent that I have to use my card in order not to have an annual or monthly fee.even when I use my card at an atm card machine I don't have to pay.it's been a good card and I will never change my card service as long as I don't have to have an annual fee.This card is a blessing to me and my family.…read more

I have the Chase Freedom card and it's great. having no annual fees is a big selling point for me when it comes to picking out a credit card. this one also has great cash back options and bonus rewards.

@WalletHub

We work hard to show you up-to-date product terms, however, this information does not originate from us and thus, we do not guarantee its accuracy. Before submitting an application, always verify all terms and conditions with the offering institution. Please let us know if you notice any differences.

† Approval Odds are WalletHub estimates intended to gauge your likelihood of approval for a particular product. Approval Odds are based on WalletHub data and are not provided or endorsed by the lender. Approval Odds are not meant to imply or guarantee that you will be approved by the lender or that credit will be extended.

Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.